Which of the Following Could Test the Occurrence Assertion for Payroll-Related

question 38

Multiple Choice

Which of the following could test the occurrence assertion for payroll-related liabilities?

• A) Compare items in accrued payroll taxes to the supporting payroll tax return.
• B) Search for unrecorded liabilities.
• C) Examine payroll tax returns to determine that the expense was recorded in the proper period.
• D) Review payroll liabilities for proper classification as short- or long-term.

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Definitions:

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced, showing how fixed costs per unit change with output levels.

Marginal Cost

The cost of producing one additional unit of a good or service, considering the variable costs involved.

Total Cost

The sum of all the expenses incurred in producing a good or service, including both fixed and variable costs.

Average Cost

The cost per unit of output, calculated by dividing the total cost of production by the number of units produced.